Dubai: The media reported that Abu Dhabi’s state-owned airport operator has terminated a contract with a consortium, building a terminal at the emirate’s main airport for 10.8 billion dirhams (US$2.9 billion), citing four sources with knowledge of the deal.
The group, which includes Arabtec based in the UAE, TAV Insaat of Turkey, and Consolidated Contractors Company (CCC) in Athens, was awarded the contract to build Abu Dhabi’s Midfield Terminal Building in 2012.
One of the sources claims the contract was canceled after state-owned Abu Dhabi Airports overrun the cost of the project. Abu Dhabi Airports and TAV Insaat refused to comment. Arabtech, filed for liquidation in January, and CCC representatives were unable to be reached for comments.
There have been years of delays with the terminal, which is still under construction and was once scheduled to open in 2017. Abu Dhabi Airports reported in 2019 that the construction of the new terminal was 97.6% complete.
According to two sources, Abu Dhabi-based Trojan was awarded the contract to finish the terminal’s construction. Trojan didn’t respond to requests for comment.
Etihad Airways’ 700,000 square metre terminal was built to support its growth. The state-owned airline initially aimed to build a major hub in Abu Dhabi, but it has since restructured and scaled back its ambitions.
The cancellation of the contract also comes during a deep recession in the travel industry, one that is forecast to last years.
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